SOLUTION: How much money should be deposited today in an account that earns 6% compounded monthly so that it will accumulate to $10,000 in three​ years? The amount of money that should

Algebra ->  Finance -> SOLUTION: How much money should be deposited today in an account that earns 6% compounded monthly so that it will accumulate to $10,000 in three​ years? The amount of money that should       Log On


   

Question 1175040: How much money should be deposited today in an account that earns 6% compounded monthly so that it will accumulate to $10,000 in three​ years?
The amount of money that should be deposited is ​$
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!


Hi
In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29 0r +P+=+A%2F%28%281%2Br%2Fn%29%5E%28nt%29%29
A = Accumulated Amount
P= principal = 
r= annual rate = .06
n= periods per year = 12
t= years =3
 +P+=+10000%2F%28%281%2B.06%2F12%29%5E%2836%29%29

 +P+=+10000%2F%28%281.005%29%5E%2836%29%29 = $8356.45

Wish You the Best in your Studies.